ABOUT AUDIT U/S 44AB AND 44AD

This discussion clarifies tax filing options for a civil contractor with a turnover of Rs. 2.87 crore for the 2023-24 financial year. It addresses whether to file under Section 44AD or if a compulsory audit under Section 44AB is required. The key factor determining this is the proportion of cash payments made; if cash expenses do not exceed 5% of total payments, Section 44AD may be applicable, especially with the recent increase in turnover threshold to Rs. 3 crore. However, exceeding this cash payment limit necessitates an audit under Section 44AB.